The Bank of Princeton Announces First Quarter 2022 Results

16 mins read

PRINCETON, N.J., April 21, 2022 — The Bank of Princeton (the “Bank”) (NASDAQ: BPRN) today reported its unaudited results of operations and financial condition for and at the quarter ended March 31, 2022.  The Bank reported net income of $6.0 million, or $0.91 per diluted common share, for the first quarter of 2022, compared to net income of $6.2 million, or $0.92 per diluted common share, for the fourth quarter of 2021, and net income of $4.9 million, or $0.70 per diluted common share, for the first quarter of 2021. The decrease in net income, when compared to the three months ended December 31, 2021, was primarily due to a reduction of $146 thousand in net-interest income, a $421 thousand reduction in non-interest income and a $305 thousand increase in operating expenses, partially offset by a $410 thousand reduction in income taxes payable and no provision for loan losses recorded for this quarter compared to the $300 thousand recorded in the prior quarter. The increase in net income, when comparing it to the three months ended March 31, 2021, was primarily due to an increase in net interest income of $1.1 million, a $1.1 million decrease in the provision for loan losses and a $183 thousand increase to non-interest income, partially offset by a $1.0 million increase in non-interest operating expenses and a $229 thousand increase in income tax expense.  

Highlights for the quarter-ended March 31, 2022 are as follows:

  • The Bank initiated a second 5% stock buyback program during the first quarter by purchasing 124,440 shares of common stock at a weighted average price of $29.04.
  • Net interest income for the first quarter of 2022 increased $1.1 million or 7.4% over the same period in 2021.
  • The Bank decreased its cost of funds on deposits by 30 basis points in the first quarter of 2022 from the same period in 2021.
  • The ratio of nonperforming loans to total loans continues to be low at 0.08% as of March 31, 2022 compared to 0.09% at December 31, 2021 and compared to 0.14% at March 31, 2021.

President/CEO Edward Dietzler stated that, “The Bank started 2022 with a very strong performance in loan growth with an increase of $102.1 million or 32.4% annualized excluding the Payroll Protection Program  loan portfolio, deriving a strong net interest margin of 4.09%.”

Balance Sheet Review

Total assets were $1.68 billion at March 31, 2022, a decrease of $9.7 million, or 0.6% when compared to $1.69 billion at the end of 2021. The primary reason for the decrease in total assets was a decrease in cash and cash equivalents of approximately $64.7 million, and a $4.7 million decrease in available-for-sale securities, partially offset by an increase of $60.0 million in net loans.  The increase in net loans primarily consisted of a $59.1 million increase in commercial real estate loans and a $46.2 million increase in construction and development loans, partially offset by a decrease of $43.0 million in Payroll Protection Program (“PPP”) loans.

Total deposits at March 31, 2022 decreased $4.6 million, or 0.3%, when compared to December 31, 2021.  When comparing deposit products between the two periods, certificates of deposit decreased $24.1 million and non-interest-bearing deposits decreased $12.6 million. These decreases were partially offset by an increase in savings accounts of $12.6 million, an increase of $10.1 million in demand accounts and a $9.4 million increase in money market accounts. In addition, the Bank had no outstanding borrowings at March 31, 2022 and December 31, 2021.  

Total stockholders’ equity at March 31, 2022 decreased $3.3 million or 1.5% when compared to the end of 2021. This decrease was primarily due to the $4.5 million decrease in the accumulated other comprehensive income on the available-for-sale investment portfolio associated with an increase in unrealized losses due to the increase in interest rates, and $3.6 million of common stock repurchased in the 2022 buyback program, partially offset by a $4.3 million increase in retained earning consisting of $6.0 million of net income less $1.7 million of cash dividends recorded during the period.    The ratio of equity to total assets at March 31, 2022 and at December 31, 2021, was $12.7% and 12.8%, respectively.  

Asset Quality

At March 31, 2022, non-performing assets were $1.4 million, a decrease of $16 thousand, or 1.1%, when compared to the amount at December 31, 2021.  This decrease was primarily due to principal payments received during the three months ended March 31, 2022.  Troubled debt restructurings (“TDRs”) totaled $6.8 million at March 31, 2022 and $6.9 million at December 31, 2021. Three TDR loans totaling $6.1 million are performing in accordance with the agreed-upon terms and there is one loan in non-accrual status as of March 31, 2022.  

As part of the Bank’s commitment to provide assistance during the COVID-19 pandemic, the Bank agreed to defer either the principal portion or both principal and interest payments for its customers who requested the deferral and were not delinquent prior to the government shut down.  All but one customer returned to their regular payment schedule. As of March 31, 2022, the Bank had only one loan that was modified totaling $9.0 million.  Under current accounting guidance, these loans are not required to be classified as TDRs.

Review of Quarterly Financial Results

The $162 thousand decrease in net income this quarter when compared to the previous quarter was largely a result of a $333 thousand decrease in interest income, partially offset by a $187 thousand, or 13.3%, decrease in interest expense, partially resulting from a four basis points reduction in the rate on total deposits.  Interest income for the first quarter of 2022 included approximately $1.2 million in accelerated accretion attributable to deferred fees received from PPP loans, due to the U.S. government forgiving the debt and paying off the loans. The net interest margin for the first quarter of 2022 was 4.09%, increasing 13 basis points when compared to the fourth quarter of 2021. This increase was primarily due to a 10 basis point increase in the yield on the earning assets and a reduction of five basis points in total interest bearing deposits.  When comparing the three month periods ended March 31, 2022 and 2021, net interest income increased $1.1 million, which was primarily due to a reduction in interest expense of $807 thousand and an increase of $292 thousand in interest income.  The total rate on average interest-bearing liabilities, which includes non-interest-bearing deposits, for the three month periods ended March 31, 2022 and 2021 was 0.34% and 0.60%, respectively.

The Bank did not record a provision for credit losses for the three month period ended March 31, 2022.  The comparable amounts were $300 thousand and $1.1 million for the three months ended December 31, 2021 and March 31, 2021, respectively. The primary reasons for the provision for credit losses for the fourth and first quarters of 2021 were charge-offs in the amounts of $245 thousand and $1.1 million, respectively.  As of March 31, 2022, the Bank did not apply any qualitative factors to the loans originated from PPP, based on the U.S government’s guarantee and the Coronavirus Aid, Relief and Economic Securities Act requirement to classify these loans at 0% in determining risk-based capital ratio.  The coverage rate of allowance for credit losses to period end loans was 1.19% (excluding PPP loans, the coverage ratio was 1.23%) at March 31, 2022, compared to 1.10% (excluding PPP loans, the coverage ratio was 1.31%) at March 31, 2021, which reflects management’s assessment of the credit quality in the loan portfolio.

Total non-interest income for the first quarter of 2022 increased $183 thousand, or 21.2%, to $1.0 million when compared to the same period in 2021. This increase was primarily due to a $139 thousand increase in other non-interest income attributed to a credit on start-up costs related to a SBIC fund and a $73 thousand increase in deposit fees earned, partially offset by a $31 thousand reduction to loans fees.

Total non-interest expense for the first quarter of 2022 increased $1.0 million, or 12.2%, when compared to the same period in 2021.  This increase was primarily due to $791 thousand increase in salaries and benefits expenses, a $164 thousand increase in data processing and communication expenses, a $136 thousand increase in Federal deposit insurance costs and $69 thousand increase in advertising costs, partially offset by a $101 thousand decrease in professional fees and a $42 thousand decrease in occupancy and equipment expenses.

For the three month period ended March 31, 2022, the Bank recorded an income tax expense of $1.6 million, resulting in an effective tax rate of 21.1%, compared to an income tax expense of $2.0 million resulting in an effective tax rate of 24.6% for the three month period ended December 31, 2021, and compared to an income tax expense of $1.4 million resulting in an effective tax rate of 22.2% for the three month period ended March 31, 2021.  

COVID-19

The full impact of the coronavirus continues to evolve as of the date of this press release. As such, it is uncertain as to the full magnitude that the pandemic will have on the Bank’s financial condition, liquidity, and future results of operations.  

The Bank continues to work closely with its loan customers to educate and guide them on their options for financial assistance, including possible payment relief through deferral and waived fees.  The Bank continues to endeavor to provide a fast and flexible response to the quickly changing circumstances.

About The Bank of Princeton

The Bank of Princeton is a community bank founded in 2007.  The Bank is a New Jersey state-chartered commercial bank with 19 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville.  There are also four branches in the Philadelphia, Pennsylvania area. The Bank of Princeton is a member of the Federal Deposit Insurance Corporation (“FDIC”).

Forward-Looking Statements

The Bank of Princeton may from time to time make written or oral “forward-looking statements,” including statements contained in the Bank’s filings with the FDIC, in its reports to stockholders and in other communications by the Bank (including this press release), which are made in good faith by the Bank pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended.

These forward-looking statements involve risks and uncertainties, such as statements of the Bank’s plans, objectives, expectations, estimates and intentions that are subject to change based on various important factors (some of which are beyond the Bank’s control). The following factors, among others, could cause the Bank’s financial performance to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements: the extent of the adverse impact of the current global coronavirus outbreak on our customers, prospects and business, including related supply chain shortage of goods, as well as the impact of any future pandemics or other natural disasters; civil unrest, rioting, acts or threats of terrorism, or actions taken by the local, state and Federal governments in response to such events, which could impact business and economic conditions in our market area,  the strength of the United States economy in general and the strength of the local economies in which the Bank conducts operations; the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, market and monetary fluctuations; market volatility; the value of the Bank’s products and services as perceived by actual and prospective customers, including the features, pricing and quality compared to competitors’ products and services; the willingness of customers to substitute competitors’ products and services for the Bank’s products and services; credit risk associated with the Bank’s lending activities; risks relating to the real estate market and the Bank’s real estate collateral; the impact of changes in applicable laws and regulations and requirements arising out of our supervision by banking regulators; other regulatory requirements applicable to the Bank; and the timing and nature of the regulatory response to any applications filed by the Bank; technological changes; acquisitions; changes in consumer spending and saving habits; those risks set forth in the Bank’s Annual Report on Form 10-K for the year ended December 31, 2021 under the heading “Risk Factors,” and the success of the Bank at managing the risks involved in the foregoing.

The Bank cautions that the foregoing list of important factors is not exclusive. The Bank does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Bank, except as required by applicable law or regulation.

The Bank of Princeton


Consolidated Statements of Financial Condition


(Unaudited)


(Dollars in thousands, except per share data)












































March 31, 2022 vs



March 31, 2022 vs




March 31,


December 31,


March 31,


December 31, 2021



March 31, 2021




2022


2021


2021


$ Change


% Change


$ Change


% Change


















ASSETS







Cash and cash equivalents


$         94,030


$       158,716


$         67,517


$  (64,686)


(40.76)

%


$      26,513


39.27

%

Securities available-for-sale taxable


50,409


51,690


25,964


(1,281)


(2.48)



24,445


94.15


Securities available-for-sale tax-exempt


46,058


49,468


46,443


(3,410)


(6.89)



(385)


(0.83)


Securities held-to-maturity


206


208


214


(2)


(0.96)



(8)


(3.74)


Loans receivable, net of deferred


1,395,155


1,335,163


1,455,158


59,992


4.49



(60,003)


(4.12)


Allowance for loan losses


(16,654)


(16,620)


(16,042)


(34)


0.20



(612)


3.81


Goodwill


8,853


8,853


8,853







Core deposit intangible


2,238


2,393


2,862


(155)


(6.48)



(624)


(21.80)


Other assets


97,654


97,811


93,569


(157)


(0.16)



4,085


4.37


TOTAL ASSETS


$     1,677,949


$     1,687,682


$     1,684,538


$    (9,733)


(0.58)

%


$       (6,589)


(0.39)

%



































LIABILITIES

















Non-interest checking


$       273,679


$       286,247


$       288,852


$  (12,568)


(4.39)

%


$     (15,173)


(5.25)

%

Interest checking


269,072


259,022


241,061


10,050


3.88



28,011


11.62


Savings


238,224


225,579


193,046


12,645


5.61



45,178


23.40


Money market


382,477


373,075


324,881


9,402


2.52



57,596


17.73


Time deposits over $250,000 


26,493


33,741


55,117


(7,248)


(21.48)



(28,624)


(51.93)


Other time deposits


251,600


268,479


295,754


(16,879)


(6.29)



(44,154)


(14.93)


Total deposits


1,441,545


1,446,143


1,398,711


(4,598)


(0.32)



42,834


3.06


Borrowings




43,000



 N/A 



(43,000)


 N/A 


Other liabilities


23,164


24,961


30,280


(1,797)


(7.20)



(7,116)


(23.50)


    TOTAL LIABILITIES


1,464,709


1,471,104


1,471,991


(6,395)


(0.43)



(7,282)


(0.49)



















STOCKHOLDERS’ EQUITY

















 Common stock 


34,181


34,100


34,022


81


0.24



159


0.47


 Paid-in capital 


80,576


80,220


79,879


356


0.44



697


0.87


 Treasury stock 


(13,647)


(10,032)



(3,615)


36.03



(13,647)


 N/A 


 Retained earnings 


115,813


111,451


97,407


4,362


3.91



18,406


18.90


 Accumulated other comprehensive income (loss) 


(3,683)


839


1,239


(4,522)


(538.97)



(4,922)


(397.26)


     TOTAL STOCKHOLDERS’ EQUITY 


213,240


216,578


212,547


(3,338)


(1.54)



693


0.33



















TOTAL LIABILITIES 

















     AND STOCKHOLDERS’ EQUITY


$     1,677,949


$     1,687,682


$     1,684,538


$    (9,733)


(0.58)

%


$       (6,589)


(0.39)

%


















Book value per common share


$           33.49


$           33.42


$           31.24


$       0.07


0.21

%


$          2.25


7.20

%

Tangible book value per common share1


$           31.75


$           31.69


$           29.52


$       0.06


0.20

%


$          2.23


7.55

%


















1Tangible book value per common share in a non-GAAP measure that represents book value  per common share which excludes goodwill and core deposit intangible.




The Bank of Princeton







Loan/Deposit Tables







(unaudited)














Loan receivable, net at March 31, 2022 and December 31, 2021 were comprised of the following:

















March 31,


December 31,





2022


2021





(Dollars in thousands)



Commercial real estate


$        830,113


$        771,028



Commercial and industrial


27,780


29,677



Construction


449,879


403,680



Residential first-lien mortgages


47,599


48,638



Home equity / consumer


7,394


7,685



PPP I (SBA loans)


4,352


6,641



PPP II (SBA loans)


32,378


73,099



     Total loans


1,399,495


1,340,448



Deferred fees and costs


(4,340)


(5,285)



Allowance for loan losses


(16,654)


(16,620)



     Loans, net


$     1,378,501


$     1,318,543

















The components of deposits at March 31, 2022 and December 31, 2021 were as follows:











March 31,


December 31,





2022


2021





(Dollars in thousands)



Demand, non-interest-bearing checking


$        273,679


$        286,247



Demand, interest-bearing 


269,072


259,022



Savings


238,224


225,579



Money Markets


382,477


373,075



Time deposits


278,093


302,220



     Total Deposits


$     1,441,545


$     1,446,143










The Bank of Princeton


Consolidated Statements of Income


(Unaudited)


(Dollars in thousands except per share data)
















Three Months Ended March 31,









2022


2021


$ Change


% Change


Interest and dividend income





















Loans and fees

$           16,492


$           16,328


$      164


1.0%



Available-for-sale debt securities:











Taxable

223


108


115


106.5%




Tax-exempt

303


301


2


0.7%



Held-to-maturity debt securities

3


4


(1)


-25.0%



Other interest and dividend income

57


45


12


26.7%















Total interest and dividends

17,078


16,786


292


1.7%














Interest expense






















Deposits

1,224


2,030


(806)


-39.7%




Borrowings


1


(1)


-100.0%















Total interest expense

1,224


2,031


(807)


-39.7%















Net interest income

15,854


14,755


1,099


7.4%













Provision for loan losses


1,125


(1,125)


-100.0%













Net interest income after provision for loan losses

15,854


13,630


2,224


16.3%













Non-interest income





















Gain on sale of securities available-for-sale, net


7


(7)


-100.0%



Income from bank-owned life insurance

282


273


9


3.3%



Fees and service charges

475


402


73


18.2%



Loan fees, including prepayment penalities

95


126


(31)


-24.6%



Other 

194


55


139


252.7%















Total non-interest income

1,046


863


183


21.2%













Non-interest expense





















Salaries and employee benefits

4,901


4,110


791


19.2%



Occupancy and equipment

1,478


1,520


(42)


-2.8%



Professional fees

561


662


(101)


-15.3%



Data processing and communications

1,035


871


164


18.8%



Federal deposit insurance

264


128


136


106.3%



Advertising and promotion

119


50


69


138.0%



Office expense

54


53


1


1.9%



Other real estate owned expense

9


9


0


0.0%



Core deposit intangible

154


174


(20)


-11.5%



Other 

693


682


11


1.6%















Total non-interest expense

9,268


8,259


1,009


12.2%













Income before income tax expense

7,632


6,234


1,398


22.4%













Income tax expense

1,611


1,382


229


16.6%













Net income

$             6,021


$             4,852


1,169


24.1%













Net income per common share – basic

$              0.93


$              0.71


$     0.22


31.0%


Net income per common share – diluted

$              0.91


$              0.70


$     0.21


30.0%













Weighted average shares outstanding – basic

6,465


6,804


(339)


-5.0%


Weighted average shares outstanding – diluted

6,614


6,951


(337)


-4.8%


The Bank of Princeton


Consolidated Statements of Income (Current Quarter vs Prior Quarter)


(Unaudited)


(Dollars in thousands, except per share data)
















Quarter Ending









March 31,


December 31,









2022


2021


$ Change


% Change


Interest and dividend income





















Loans and fees

$       16,492


$       16,861


$       (369)


-2.2%



Available-for-sale debt securities:











Taxable

223


194


29


14.9%




Tax-exempt

303


295


8


2.7%



Held-to-maturity debt securities

3


3


0


0.0%



Other interest and dividend income

57


58


(1)


-1.7%















Total interest and dividends

17,078


17,411


(333)


-1.9%














Interest expense






















Deposits

1,224


1,411


(187)


-13.3%















Total interest expense

1,224


1,411


(187)


-13.3%















Net interest income

15,854


16,000


(146)


-0.9%













Provision for loan losses


300


(300)


-100.0%













Net interest income after provision for loan losses

15,854


15,700


154


1.0%













Non-interest income





















Income from bank-owned life insurance

282


290


(8)


-2.8%



Fees and service charges

475


473


2


0.4%



Loan fees, including prepayment penalities

95


757


(662)


-87.5%



Other 

194


(53)


247


-466.0%















Total non-interest income

1,046


1,467


(421)


-28.7%













Non-interest expense





















Salaries and employee benefits

4,901


4,667


234


5.0%



Occupancy and equipment

1,478


1,521


(43)


-2.8%



Professional fees

561


511


50


9.8%



Data processing and communications

1,035


898


137


15.3%



Federal deposit insurance

264


206


58


28.2%



Advertising and promotion

119


42


77


183.3%



Office expense

54


66


(12)


-18.2%



Other real estate owned expense

9


151


(142)


-94.0%



Core deposit intangible

154


154


0


0.0%



Other 

693


747


(54)


-7.2%















Total non-interest expense

9,268


8,963


305


3.4%













Income before income tax expense

7,632


8,204


(572)


-7.0%













Income tax expense

1,611


2,021


(410)


-20.3%













Net income

$         6,021


$         6,183


$       (162)


-2.6%













Net income per common share – basic

$           0.93


$           0.94


$      (0.01)


-1.1%


Net income per common share – diluted

$           0.91


$           0.92


$      (0.01)


-1.1%













Weighted average shares outstanding – basic

6,465


6,538


(73)


-1.1%


Weighted average shares outstanding – diluted

6,614


6,694


(80)


-1.2%


The Bank of Princeton

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)














For the Three Months Ended March 31,






2022


2021






Average 


Yield/


Average 


Yield/






balance


rate 


balance


rate 


$ Change


% Change

Earning assets












  Loans 

$    1,346,733


4.97%


$    1,377,302


4.81%


$       (30,569)


0.16%













Securities












  Taxable available-for-sale

52,221


1.73%


25,986


1.61%


26,235


0.12%

  Tax-exempt available-for-sale

48,605


2.53%


48,540


2.51%


65


0.02%

  Held-to-maturity

207


5.35%


215


5.27%


(8)


0.08%













Securities

101,033


2.12%


74,741


2.21%


26,292


-0.09%













Other interest-earning assets












  Interest-earning bank accounts

122,774


0.14%


49,986


0.24%


72,788


-0.10%

  Equities

1,353


3.91%


1,388


4.56%


(35)


-0.65%













Other interest-earning assets

124,127


0.18%


51,374


0.36%


72,753


-0.18%













Total interest-earning assets

1,571,893


4.41%


1,503,417


4.53%


68,476


-0.12%













Total non-earning assets

108,280




113,352



















Total assets

$    1,680,173




$    1,616,769































Interest-bearing liabilities












Checking

$      257,978


0.25%


$      263,367


0.31%


$        (5,389)


-0.06%

Savings

232,136


0.24%


184,714


0.27%


47,422


-0.03%

Money market

376,517


0.27%


312,648


0.33%


63,869


-0.06%

Certificates of deposit

290,686


0.95%


368,692


1.59%


(78,006)


-0.64%













    Total interest-bearing deposits

1,157,317


0.43%


1,129,421


0.73%


27,896


-0.30%













Non-interest-bearing deposits

285,298




248,661



















    Total  deposits

1,442,615


0.34%


1,378,082


0.60%


64,533


-0.26%













Borrowings


0.00%


478


0.32%


(478)


-0.32%

    Total interest-bearing liabilities 












       (excluding non-interest deposits)

1,157,317


0.43%


1,129,899


0.73%


27,418


-0.30%













Non-interest-bearing deposits

285,298




248,661







Total cost of funds

1,442,615


0.34%


1,378,560


0.60%


64,055


-0.26%













Accrued expenses and other liabilities

20,505




26,915







Stockholders’ equity

217,053




211,294







Total liabilities and stockholders’ equity

$    1,680,173




$    1,616,769































Net interest spread



3.98%




3.80%





Net interest margin



4.09%




3.98%

















Net interest margin (FTE)1



4.14%




4.09%

















  1Includes federal and state tax effect of tax exempt securities and loans.





















The Bank of Princeton

Consolidated Average Statement of Financial Condition

(Unaudited)

(Dollars in thousands)














For the Quarter Ended






 March 31,  2022


December 31, 2021






Average 


Yield/


Average 


Yield/






balance


rate 


balance


rate 


$ Change


% Change

Earning assets












  Loans 

$    1,346,733


4.97%


$       1,347,511


4.96%


$          (778)


0.01%













Securities












  Taxable available-for-sale

52,221


1.73%


50,124


1.56%


2,097


0.17%

  Tax-exempt available-for-sale

48,605


2.53%


47,562


2.47%


1,043


0.06%

  Held-to-maturity

207


5.35%


209


5.27%


(2)


0.08%













Securities

101,033


2.12%


97,895


2.01%


3,138


0.11%













Other interest-earning assets












  Interest-earning bank accounts

122,774


0.14%


157,550


0.11%


(34,776)


0.03%

  Equities

1,353


3.91%


1,338


3.99%


15


-0.08%













Other interest-earning assets

124,127


0.18%


158,888


0.15%


(34,761)


0.03%













Total interest-earning assets

1,571,893


4.41%


1,604,294


4.31%


(32,401)


0.10%













Total non-earning assets

108,280




102,987



















Total assets

$    1,680,173




$       1,707,281































Interest-bearing liabilities












Checking

$      257,978


0.25%


$         274,944


0.26%


$      (16,966)


-0.01%

Savings

232,136


0.24%


223,590


0.23%


8,546


0.01%

Money market

376,517


0.27%


367,493


0.27%


9,024


0.00%

Certificates of deposit

290,686


0.95%


312,634


1.09%


(21,948)


-0.14%













    Total interest-bearing deposits

1,157,317


0.43%


1,178,661


0.48%


(21,344)


-0.05%













Non-interest-bearing deposits

285,298




288,292



















    Total  deposits

1,442,615


0.34%


1,466,953


0.38%


(24,338)


-0.04%













    Total interest-bearing liabilities 












       (excluding non-interest deposits)

1,157,317


0.43%


1,178,661


0.48%


(21,344)


-0.05%













Non-interest-bearing deposits

285,298




288,292







Total cost of funds

1,442,615


0.34%


1,466,953


0.38%


(24,338)


-0.04%













Accrued expenses and other liabilities

20,505




24,056







Stockholders’ equity

217,053




216,272







Total liabilities and stockholders’ equity

$    1,680,173




$       1,707,281































Net interest spread



3.98%




3.83%





Net interest margin



4.09%




3.96%

















Net interest margin (FTE)1



4.14%




4.02%

















  1Includes federal and state tax effect of tax exempt securities and loans.
























The Bank of Princeton

Quarterly Financial Highlights

(Unaudited)












2022


2021


2021


2021


2021


March


December


September


June


March











     Return on average assets 

1.45%


1.44%


1.41%


1.34%


1.21%

     Return on average equity 

11.25%


11.34%


10.95%


10.36%


9.31%

     Return on average tangible equity1

11.86%


11.97%


11.56%


10.95%


9.86%

     Net interest margin

4.09%


3.96%


4.08%


4.06%


3.98%

     Net interest margin (FTE)2

4.14%


4.02%


4.14%


4.12%


4.09%

     Efficiency ratio – Non-GAAP3 

53.93%


50.43%


48.16%


50.87%


51.79%











Common Stock Data










     Market value at period end

$     28.85


$     29.33


$     29.87


$     28.67


$     28.62

     Market range:










        High

$     32.05


$     30.89


$     20.45


$     23.91


$     32.25

        Low

$     28.67


$     28.71


$     17.40


$     17.51


$     19.09

     Book value per common share at period end

$     33.49


$     33.42


$     30.26


$     29.85


$     29.39

     Tangible book value per common share at period end4

$     31.75


$     31.96


$     28.48


$     28.04


$     27.56

     Shares of common stock outstanding (in thousands)

6,366


6,480


6,588


6,659


6,804











CAPITAL RATIOS










Total Capital (to risk-weighted assets)

14.16%


15.10%


15.60%


15.33%


15.73%

Tier 1 Capital (to risk-weighted assets)

13.10%


13.97%


14.43%


14.19%


14.56%

Tier 1 Capital (to average assets)

12.36%


12.06%


12.29%


12.22%


12.45%

     Period-end equity to assets

12.71%


12.84%


12.89%


13.01%


12.62%

     Period-end tangible equity to tangible assets 

12.13%


12.26%


12.23%


12.40%


11.92%











CREDIT QUALITY DATA AT PERIOD END










(Dollars in thousands)










     Net charge-offs (recoveries)

($34)


$101


$821


$1,000


$1,100

     Annualized net charge-offs (recoveries) to average loans

-0.010%


0.030%


0.240%


0.279%


0.319%





















     Total nonperforming loans (TDRs not included)

406


$       422


$     1,043


$     2,381


$     2,498

     Other real estate owned

226


226


376


446


446

     Troubled debt restructurings (TDRs)










           -Performing

6,066


6,122


6,187


6,241


8,533

           -Non-performing

766


766


1,092


1,332


     Total nonperforming assets and accruing TDRs 

$     7,464


$     7,536


$     8,698


$   10,400


$   11,477











     Allowance for credit losses as a percent of:










     Period-end loans      

1.19%


1.24%


1.22%


1.14%


1.10%

     Nonaccrual loans 

1420.99%


1398.99%


769.13%


491.03%


781.77%

     Nonperforming assets 

1191.27%


1175.39%


653.96%


432.05%


642.19%











    As a percent of total loans:










    Nonaccrual loans 

0.08%


0.09%


0.16%


0.23%


0.14%

    Accruing TDRs 

0.43%


0.46%


0.46%


0.45%


0.59%

    Nonaccrual loans and accruing TDRs 

0.52%


0.55%


0.62%


0.71%


0.77%





















1Return on average tangible equity is a non-GAAP measure that represents the rate of return on tangible common equity.




2Includes the effect of tax exempt securities and loans










3The efficiency ratio is a non-GAAP measure that represents the ratio of non-interest expense (excluding amortization of core deposit intangible) 

       divided by net interest income and non-interest income. 










4Tangible book value per common share is a non-GAAP measure that represents book value per common share which 





      excludes goodwill and core deposit intangible. 










Contact George Rapp
609.454.0718
[email protected]

SOURCE The Bank of Princeton